9911796707
TMI Blog1989 (4) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... the valuation date was 31-12-1984. 2. The WTO made the addition by observing that since the building had not yet been completed and not been used for business purposes, the assessee's claim of exemption in relation to the said assets could not be accepted. 3. The CWT(A) allowed the assessee's appeal and deleted the addition of Rs. 1,93,127 by accepting the contention that since the industrial plot was purchased by the company in public auction from Delhi Development Authority in November 1983 and the building after construction was used for industrial purposes clause (vi) of sec. 40(3) of the Finance Act, 1983 came to the assessee's rescue and the value of the plot and the factory building under construction was, therefore, not taxable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the net wealth on the corresponding valuation date, not being a company in which the public are substantially interested. Sub-section (2) lays down that for the purpose of sub-section (1), the net wealth of a company shall be the amount by which the aggregate value of all the assets referred to in sub-section (3) on the valuation date is in excess of the aggregate value of all debts. There is a proviso attached to sub-section (2) laying down constraints that where any debt secured on any asset belonging to the assessee is incurred for, or enures to the benefit of any other person, or is not represented by any asset belonging to the assessee, the value of such debt shall not be taken into account in computing the net wealth. 6. Sub-secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s' under the Income-tax Act does not exceed eighteen thousand rupees ; " 7. The provision relevant to the present appeal is clause (vi) and, therefore, we must closely look at the opening wording that the " building or land appurtenant thereto other than building or part thereof used by the assessee as factory, godown, warehouse, hotel or office for the purposes of its business or as residential accommodation for its employees etc., etc. " The use of the word " or " after building in sub-clause (vi) makes building and land appurtenant thereto disjunctive to each other and, therefore, unlike the normal notion that building and land would form one unit cannot be said to be good as far as the applicability of sec. 40 of the Finance Act, 1983 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder construction, as a fact, was used by the assessee as a factory after its completion. 9. Independent of the above, the uncompleted building meant and being constructed for the use of the assessee cannot be termed as any thing different than the building used by the assessee as a factory, etc. 10. Besides, the Revenue's grievance projected in its appeal is that the learned CWT(A) erred in holding that the industrial plot in possession of the company was exempt from wealth-tax and, therefore, though the question raised in the ground can be said to be limited in relation to taxability of the value of plot, but we have dealt with the question of relief in relation to cost of construction of the uncompleted building also, because to avoi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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